Corporate Social Responsibility, Corporate Governance and Firm Value

Kook, Chan Pyo; Kang, Yun Sik

Korean Journal of Financial Studies 2011;40(5):713-748.
Published online December 31, 2011.

Chan Pyo Kook, Yun Sik Kang

기업의 사회적 책임, 지배구조 및 기업가치

국찬표, 강윤식

Abstract

This article analyzes the effect of CSR on the corporate value and the empirical relationship between CSR and the corporate governance in Korea`s market. The result shows that CSR activities improve the corporate values, and it implies that this is the reason for firms to implement the voluntary CSR activities continuously. Furthermore, we show that the effect of CSR on the corporate value is different by the corporate governance level because of the agent cost regarding the CSR activities. In the firms with the higher level of governance, CSR activities positively affect the firm value. And in the firms with the lower level of governance, they do not affect the firm value significantly. It implies that corporate governance system induces the efficient CSR activities, and it improves the corporate value via the revenue increase with the better reputation. And the governance system prevent the decrease of the corporate value by controling the potential high agency cost due to the inefficient CSR activities. In addition, the more actively the firm is getting in the CSR activities, the less level of conflict of interest exist between the shareholders and the other stakeholders of the firm. Finally, the conclusions of this study suggest that the voluntary CSR activities may increase the value of the firm and the shareholders together. This is another path for the corporate governance in enhancing the corporate value.

Key Words: 기업가치,기업의 사회적 책임,기업지배구조,이해관계자,주주,Corporate Governance,Corporate Social Responsibility(CSR),Firm Value,Shareholder,Stakeholder